Our Take On Enagás, S.A.'s (BME:ENG) CEO Salary
In 2012 Marcelino Oreja Arburúa was appointed CEO of Enagás, S.A. (BME:ENG). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Enagás
How Does Marcelino Oreja Arburúa's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Enagás, S.A. has a market cap of €6.1b, and reported total annual CEO compensation of €937k for the year to December 2019. That's a fairly small increase of 1.3% on year before. We think total compensation is more important but we note that the CEO salary is lower, at €500k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €3.6b to €11b. The median total CEO compensation was €937k.
So Marcelino Oreja Arburúa is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Enagás has changed from year to year.
Is Enagás, S.A. Growing?
Enagás, S.A. has reduced its earnings per share by an average of 1.6% a year, over the last three years (measured with a line of best fit). Its revenue is down 11% over last year.
In the last three years the company has failed to grow earnings per share. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Enagás, S.A. Been A Good Investment?
With a total shareholder return of 16% over three years, Enagás, S.A. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Marcelino Oreja Arburúa is paid around the same as most CEOs of similar size companies.
We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We do not think the CEO pay is a problem, but one might argue that the company should improve returns to shareholders before increasing it. So you may want to check if insiders are buying Enagás shares with their own money (free access).
If you want to buy a stock that is better than Enagás, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
